Morgan Stanley analysts reiterate their OW (Overweight) on Caixabank and maintain the stock as a sector Top Pick, as they believe that the market is undervaluing the bank’s capital generation capacity by analysing DTAs (deferred tax assets).
Additionally, they now assume in their base scenario a €1.5bn buyback that they expect to be announced in Q3, which together with a mark-to-market of the yield curve, justifies an upward revision of the 2023-25 EPS (earning per share) by 3-5%. OVERWEIGHT, P.O. 5 euros
